On the road to recovery
New vehicle sales rise in August
By Rob Roach, ATB Economics 18 October 2023 1 min read
August was a relatively good month for new vehicle sales in Alberta.
Almost 19,000 new vehicles rolled off lots in August for a year-over-year(y/y) increase of 18%.* This should boost the August retail sales numbers that will be released on Friday.
This was the eighth y/y rise in units sold in a row and continues the trend toward a more “normal” level of sales compared to the years before COVID.
However, as the chart below illustrates, even though sales so far in 2023 have been better than in 2022 at +10%, they remain below pre-pandemic levels.
The industry is still shaking off the negative effects of supply chain disruptions and is now facing the challenge of higher interest rates .
It is a very similar story nationally: y/y sales have increased for 10 months in a row; sales between January and August are up by 10% compared to the same period in 2022; but sales remain lower than before the pandemic.
*Numbers are not seasonally adjusted. New vehicle sales tend to rise and fall at different times of the year so tracking month-over-month changes is not particularly helpful.
Answer to the previous trivia question: Between 2000 and 2022, the lowest annual inflation rate in Canada was 0.3% in 2009.
Today’s trivia question: What is Alberta’s oldest surviving house?